If there is the most important period of time in your career in the Forex market, this would be the first month trading that you do. In fact, we would like to correct ourselves. The most important time is the months of preparation before you start trading. During these months, you should spend all the time studying the market, understanding technical & fundamental analysis.
Find a forex strategy that will work best for you.
After you feel confident enough to start trading, and you have already had trading experience on a demo account, then you can start trading Forex. However, keep in mind that in spite of the fact that Forex brokers make you think that you will soon get rich; you most likely will not become very rich person soon.
First month trading goals
The thing you should aim for in the first month trading is simple – stay on the wave. For a start, you can aim at just keeping your account alive. Of course, you can have a clear strategy of making lots and lots of cash but from a practical point of view this is not possible. The truth is that many forex traders burn their account within the first few weeks!
Many people fail to keep their forex account running even for a few weeks (they usually get greedy and lose all their deposit).
First month trading tips
So how can a novice trader protect himself from not losing money in the first month trading in the Forex market? Below is a list of some tips and directions that will help you reach your goal and will not let you down into wiping your accounts:
Hours spent trading on the demo account
If you have not spent countless hours trading on a demo account, which is an absolute necessity before risking your money, you will need to go back and do it.
Be ready to lose money
It seems like it does not have anything to do with your profits, but it does. If you understand that you will have a loss-making transactions, then when this happens, you will be able to cope and keep your head up.
Have a clear strategy
By this point, you should already have a trading strategy. If you do not have it, stop and find it. Then test it, and carefully study the results. Constantly check and revise your trading strategy to make sure that it is capable of producing positive results.
This is of absolute importance. Do not risk more than 2% of your account in one transaction, no matter what! Use stop-loss, take profits, and all the other tools that are at your disposal and that will help you effectively manage your Forex account.
Lack of emotion
Be sure to keep your emotions under control. Do not let greed, fear or depression in any way affect your currency trading. The more you stick to the strategy, and the less you are exposed to emotions, the better trader you will become.
Use leverage with extreme caution. If you use a very high leverage trading can become risky for you and your account. Yes, we know it’s tempting to open a position size of 100,000 $ with only $ 200 on the account, but do not do it!( At least not at the beginning of your career and, perhaps, not ever)
Take Forex seriously, this is your life, which we are talking about. Do not think about Forex, as you might think about a casino, this is not a holiday, it’s your career. Believe in yourself and your decisions and never let emotions interfere with your trading.